Comments on Links for 01-07-2013TypePad2013-01-07T10:30:14ZMark Thomahttp://economistsview.typepad.com/economistsview/tag:typepad.com,2003:http://economistsview.typepad.com/economistsview/2013/01/links-for-01-07-2013/comments/atom.xml/Magento Development commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017d3f9f9d38970c2013-01-08T11:36:29Z2013-01-08T11:36:29ZMagento Developmenthttp://www.biztechconsultancy.com/magento-development.htmMan I like your article and it is so informational and I am gonna bookmark it. I Have to say...<p>Man I like your article and it is so informational and I am gonna bookmark it. I Have to say the Superb analysis you have done is greatly remarkable.</p>anne commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017ee7104acc970d2013-01-08T03:12:57Z2013-01-08T03:12:57Zannehttp://www.nytimes.com/2013/01/08/world/middleeast/chemical-weapons-showdown-with-syria-led-to-rare-accord.html January 7, 2013 Hints of Syrian Chemical Effort Set Off Global Move to Stop It By ERIC SCHMITT and...<p><a href="http://www.nytimes.com/2013/01/08/world/middleeast/chemical-weapons-showdown-with-syria-led-to-rare-accord.html" rel="nofollow">http://www.nytimes.com/2013/01/08/world/middleeast/chemical-weapons-showdown-with-syria-led-to-rare-accord.html</a></p>
<p>January 7, 2013</p>
<p>Hints of Syrian Chemical Effort Set Off Global Move to Stop It<br />
By ERIC SCHMITT and DAVID E. SANGER</p>
<p>Syrian troops have stopped the chemical mixing and bomb preparation, but concern remains that President Bashar al-Assad may use already-produced weapons at any moment.</p>
<p>[ Of course, this is just the way in which the Bush Administration sought to justify a war in Iraq with the American media following step by step but though the steps are being repeated there is almost no recognition and remembrance or concern at all. ]</p>anne commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017d3f9bd5b6970c2013-01-08T03:06:00Z2013-01-08T03:06:00Zannehttp://www.social-europe.eu/2011/08/the-crisis-and-fiscal-policies-in-the-peripheral-countries-of-the-eurozone/ August 24, 2011 The Crisis and Fiscal Policies in the Peripheral Countries of the Eurozone By Vicente Navarro Introduction:...<p><a href="http://www.social-europe.eu/2011/08/the-crisis-and-fiscal-policies-in-the-peripheral-countries-of-the-eurozone/" rel="nofollow">http://www.social-europe.eu/2011/08/the-crisis-and-fiscal-policies-in-the-peripheral-countries-of-the-eurozone/</a></p>
<p>August 24, 2011</p>
<p>The Crisis and Fiscal Policies in the Peripheral Countries of the Eurozone<br />
By Vicente Navarro</p>
<p>Introduction: The political context</p>
<p>To understand the situation in the countries at the periphery of the European Union, four countries within the Eurozone, Portugal, Ireland, Greece and Spain, we have to understand the political context they have in common. All of them were governed by fascist or fascist-like dictatorships (Spain, Portugal, and Greece) or by authoritarian right-wing regimes (Ireland) for most of the period from the late 1930s or early 1940s until the late 1970s. This history is usually ignored in analyses of these countries.</p>
<p>This shared history, however, has determined the nature of their states, a critical variable for understanding countries’ economic behavior. Their states have been very repressive. Even today, these countries have the largest number of policemen per 10,000 individuals in the EU-15. Another shared characteristic is their very low level of state revenues and their highly regressive fiscal policies. The revenues to the state are much lower than the EU-15 average: approximately 34% of GNP in Spain, 37% in Greece, 39% in Portugal, and 34% in Ireland, compared with the EU-15 average of 44%, and compared with 54% in Sweden – the EU-15 country where the left has governed for the longest period. The low state revenues result from extremely regressive policies. The super-rich, rich, and high-income upper middle classes do not pay taxes at the same level and intensity as those in most of the central and northern EU-15 countries – a consequence of a history of government by ultra-right-wing parties. Of course, progress has been made since the dictatorships ended. But the dominance of conservative forces in the political and civil lives of these countries explains why their state revenues are still so low....</p>
<p><br />
Vicente Navarro is Professor of Political Science and Public Policy at the Pompeu Fabra University, Spain, and Johns Hopkins University in the US.</p>anne commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017c356cebd5970b2013-01-08T03:04:13Z2013-01-08T03:04:13Zannehttp://www.nytimes.com/2013/01/08/world/europe/08iht-letter08.html January 7, 2013 Military in Greece Is Spared Cuts By JUDY DEMPSEY The armed forces, so far, have gotten...<p><a href="http://www.nytimes.com/2013/01/08/world/europe/08iht-letter08.html" rel="nofollow">http://www.nytimes.com/2013/01/08/world/europe/08iht-letter08.html</a></p>
<p>January 7, 2013</p>
<p>Military in Greece Is Spared Cuts<br />
By JUDY DEMPSEY</p>
<p>The armed forces, so far, have gotten away relatively lightly among the drastic cuts that have affected health care, transportation and education.</p>
<p>[ I &quot;believe&quot; that relative to the size of the economy, Greece is the most militarized country in the European Union. I think I learned that from Vicente Navarro and will try to find the reference but the context of relatively intense Greek militarism is surely a legacy of authoritarian right-wing Greek governments. ]</p>anne commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017ee7102acb970d2013-01-08T02:54:19Z2013-01-08T02:54:19ZanneRead this astonishing (absurd) passage carefully: http://www.nytimes.com/2013/01/08/world/asia/with-eye-on-china-japan-weighs-raising-military-spending.html January 7, 2013 With Eye on China, Japan Weighs Raising Military Spending By...<p>Read this astonishing (absurd) passage carefully:</p>
<p><a href="http://www.nytimes.com/2013/01/08/world/asia/with-eye-on-china-japan-weighs-raising-military-spending.html" rel="nofollow">http://www.nytimes.com/2013/01/08/world/asia/with-eye-on-china-japan-weighs-raising-military-spending.html</a></p>
<p>January 7, 2013</p>
<p>With Eye on China, Japan Weighs Raising Military Spending<br />
By MARTIN FACKLER</p>
<p>TOKYO — Mr. Abe’s efforts to raise Japan’s military profile in the region are intended not only to bolster his nation’s declining influence, but also to help an economically ailing ally, the United States, counter China’s rising military prowess. </p>anne commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017d3f9bbf39970c2013-01-08T02:52:04Z2013-01-08T02:52:04ZanneAs for the new Japanese government, never ever trust initial perceptions: http://www.nytimes.com/2013/01/08/world/asia/with-eye-on-china-japan-weighs-raising-military-spending.html January 7, 2013 With Eye on China, Japan...<p>As for the new Japanese government, never ever trust initial perceptions:</p>
<p><a href="http://www.nytimes.com/2013/01/08/world/asia/with-eye-on-china-japan-weighs-raising-military-spending.html" rel="nofollow">http://www.nytimes.com/2013/01/08/world/asia/with-eye-on-china-japan-weighs-raising-military-spending.html</a></p>
<p>January 7, 2013</p>
<p>With Eye on China, Japan Weighs Raising Military Spending<br />
By MARTIN FACKLER</p>
<p>TOKYO — Japan’s new conservative government announced a review of national military strategy on Monday that analysts said was aimed at offsetting China’s growing military power and that may increase defense spending for the first time in a decade....</p>
<p>Mr. Abe’s efforts to raise Japan’s military profile in the region are intended not only to bolster his nation’s declining influence, but also to help an economically ailing ally, the United States, counter China’s rising military prowess. </p>anne commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017ee7101fa0970d2013-01-08T02:46:56Z2013-01-08T02:46:56Zannehttp://www.nytimes.com/2013/01/08/business/japans-cleanup-after-a-nuclear-accident-is-denounced.html January 7, 2013 In Japan, a Painfully Slow Sweep After Quake By HIROKO TABUCHI Much of the cleanup is...<p><a href="http://www.nytimes.com/2013/01/08/business/japans-cleanup-after-a-nuclear-accident-is-denounced.html" rel="nofollow">http://www.nytimes.com/2013/01/08/business/japans-cleanup-after-a-nuclear-accident-is-denounced.html</a></p>
<p>January 7, 2013<br />
<br />
In Japan, a Painfully Slow Sweep After Quake<br />
By HIROKO TABUCHI </p>
<p>Much of the cleanup is primitive and bereft of methods seen as effective in removing radioactive cesium.</p>
<p>[ I have visited Japan and studied Japanese cultural history, and pay attention to the Japanese political-economics, but I do not have a sense of how Japanese government, nationally or locally, operates. Also, how proficient are the Japanese technically? My sense is very, very proficient but I am puzzled by seeming lapses in application. ]</p>anne commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017ee70f471b970d2013-01-08T00:49:21Z2013-01-08T00:49:21ZanneActually, I completely agree that catering to another government's interests in determining American policy can undermine the effectiveness and surely...<p>Actually, I completely agree that catering to another government&#39;s interests in determining American policy can undermine the effectiveness and surely undermines the legitimacy of the policy. However, this has repeatedly been happening as Honduras and Paraguay for instance show glaringly.</p>
<p>The question that is so dangerous for America and other peoples however is the militarizing and unrestrained militarization or destructive nature of American foreign policy that prominent so firmly Democrats support.</p>anne commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017d3f9a035d970c2013-01-07T23:15:16Z2013-01-07T23:15:16ZanneSince when did S. --------- and S. ------ serve Israel's interests before the USA's? Their open disloyalty to America first...<p>Since when did S. --------- and S. ------ serve Israel&#39;s interests before the USA&#39;s? Their open disloyalty to America first is as close to treason without actually being treason as one can get imo. </p>
<p>[ Crazed lying. ]</p>Fred C. Dobbs commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017ee70e1c6a970d2013-01-07T22:42:00Z2013-01-07T22:42:00ZFred C. DobbsWhat is the 'proper' p.o.v for a Dem Sec/Defense to hold w/r/t Israel?<p>What is the &#39;proper&#39; p.o.v for a<br />
Dem Sec/Defense to hold w/r/t Israel?</p>im1dc commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017ee70e0d3b970d2013-01-07T22:35:11Z2013-01-07T22:35:11Zim1dcA well written and reasoned article that details recent evidence why the $1 Trillion Platinum coin or the 14th Amendment...<p>A well written and reasoned article that details recent evidence why the $1 Trillion Platinum coin or the 14th Amendment may not be necessary</p>
<p><a href="http://tpmdc.talkingpointsmemo.com/2013/01/cracks-emerge-in-gop-debt-limit-offensive.php" rel="nofollow">http://tpmdc.talkingpointsmemo.com/2013/01/cracks-emerge-in-gop-debt-limit-offensive.php</a></p>
<p>&quot;Cracks Emerge In GOP Debt Limit Offensive&quot;</p>
<p>by Brian Beutler... January 7, 2013, 3:15 PM </p>im1dc commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017d3f994124970c2013-01-07T21:48:34Z2013-01-07T21:48:34Zim1dcFile under 'no good deed goes unpunished' http://www.newsdaily.com/stories/bre90601a-us-climate-biofuels/ "Biofuels cause pollution, not as green as thought - study" By Environment...<p>File under &#39;no good deed goes unpunished&#39;</p>
<p><a href="http://www.newsdaily.com/stories/bre90601a-us-climate-biofuels/" rel="nofollow">http://www.newsdaily.com/stories/bre90601a-us-climate-biofuels/</a></p>
<p>&quot;Biofuels cause pollution, not as green as thought - study&quot;</p>
<p>By Environment Correspondent Alister Doyle 2013/01/06 </p>
<p>&quot;OSLO, Jan. 6, 2013 (Reuters) — Green schemes to fight climate change by producing more bio-fuels could actually worsen a little-known type of air pollution and cause almost 1,400 premature deaths a year in Europe by 2020, a study showed on Sunday...&quot;</p>im1dc commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017d3f993167970c2013-01-07T21:41:15Z2013-01-07T21:41:15Zim1dcIt breaks my heart that the State of my birth is in the situation that it is in b/c of...<p>It breaks my heart that the State of my birth is in the situation that it is in b/c of the disingenuous Republican anti-tax mob idiocy called Prop. 13.</p>im1dc commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017ee70d82db970d2013-01-07T21:31:13Z2013-01-07T21:31:13Zim1dcI doubt this finding, but it may be b/c of the mandated EHR costs http://www.medpagetoday.com/PublicHealthPolicy/Washington-Watch/36741 "Spending on MD Services Up...<p>I doubt this finding, but it may be b/c of the mandated EHR costs</p>
<p><a href="http://www.medpagetoday.com/PublicHealthPolicy/Washington-Watch/36741" rel="nofollow">http://www.medpagetoday.com/PublicHealthPolicy/Washington-Watch/36741</a></p>
<p>&quot;Spending on MD Services Up More Than Other Costs&quot;</p>
<p>By David Pittman, Washington Correspondent, MedPage Today</p>
<p>January 07, 2013</p>
<p>&quot;WASHINGTON -- U.S. spending on healthcare remained flat overall in 2011, the latest year available, but spending on doctors and other clinician services continued to rise, a government report showed...&quot;</p>Matt Young commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017ee70cf161970d2013-01-07T20:14:40Z2013-01-07T20:14:40ZMatt Young"Democrats say they want to raise as much as $1 trillion in new revenues through tax reform later this year...<p>&quot;Democrats say they want to raise as much as $1 trillion in new revenues through tax reform later this year to balance Republican demands to slash mandatory spending.</p>
<p>Democratic leaders have had little time to craft a new position for their party since passing a tax deal Tuesday that will raise $620 billion in revenue over the next 10 years. &quot;</p>
<p>Read more: <a href="http://thehill.com/homenews/senate/275815-democrats-looking-for-up-to-1t-in-new-tax-revenues-this-year#ixzz2HK3XGbsX" rel="nofollow">http://thehill.com/homenews/senate/275815-democrats-looking-for-up-to-1t-in-new-tax-revenues-this-year#ixzz2HK3XGbsX</a><br />
-------------------</p>
<p>This is the Supid Party under Pelosi. Where the H was she for the last year. Why didn&#39;t Obama take Andrew Samwick&#39;s advice? Obama missed the pivor and now wants a third try at taxes? A third try in two years when normally tax rates are set for an eight year period? Skewing around with taxes twice in one year is a huge multiplier less than one.</p>
<p>Like I say, we need an economist with no arms.</p>Matt Young commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017d3f9882be970c2013-01-07T20:09:31Z2013-01-07T20:09:31ZMatt YoungI have oil at $93, now testing the Jim Hamilton double peak. Watch out below. I have ten year rates...<p>I have oil at $93, now testing the Jim Hamilton double peak. Watch out below.<br />
I have ten year rates at 1.9%, still rising. Watch out below.</p>
<p>So, you all still believe we can borrow another 1.5T this year? Not with a downturn, not with a doubling of interest rates. Remember, Treasury is now moving out to the long end of the curve, even as interest rates are now a quarter point higher. An effective doubling of interest rates yields an additional 120 billion in debt service costs.</p>
<p>So, the Undemocrats of DC have gotten us into a pickle and Obama&#39;s pivot point now lost , we are under a Big State regime, courtesy of Jerry Brown and the Bond market.</p>
<p>We need economists who have no arms. We need an FDR in the White House.</p>Matt Young commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017d3f9861c0970c2013-01-07T19:55:20Z2013-01-07T19:55:20ZMatt YoungThe Fiscal Grand Canyon - Andrew Samwick "A clear statement by a newly re-elected Obama in November that unless the...<p>The Fiscal Grand Canyon - Andrew Samwick <br />
&quot;A clear statement by a newly re-elected Obama in November that unless the Congress sent him a thoughtful bill to sign, the tax code would simply revert would have been a much better course of action. &quot;<br />
-----------<br />
Absolutely. We passed up the Clinton pivot, thanks a lot Obama. So, Obama, can you do an FDR pivot? No, so we are skewed.</p>Mark A. Sadowski commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017c3568eb4d970b2013-01-07T18:52:37Z2013-01-07T18:52:37ZMark A. Sadowskihttp://monetaryfreedom-billwoolsey.blogspot.com/2013/01/woodford-endorses-ngdplt-again.html January 7, 2013 Woodford Endorses NGDPLT (again) By Mayor Bill Woolsey "Woodford has again endorsed nominal GDP level targeting....<p><a href="http://monetaryfreedom-billwoolsey.blogspot.com/2013/01/woodford-endorses-ngdplt-again.html" rel="nofollow">http://monetaryfreedom-billwoolsey.blogspot.com/2013/01/woodford-endorses-ngdplt-again.html</a></p>
<p>January 7, 2013</p>
<p>Woodford Endorses NGDPLT (again) <br />
By Mayor Bill Woolsey</p>
<p>&quot;Woodford has again endorsed nominal GDP level targeting.</p>
<p><a href="http://www.bloomberg.com/news/2013-01-06/should-the-fed-change-its-target-interview-with-michael-woodford.html" rel="nofollow">http://www.bloomberg.com/news/2013-01-06/should-the-fed-change-its-target-interview-with-michael-woodford.html</a></p>
<p>I particularly agree with his point that it is important to define the target in terms of levels and not growth rates and further, that nominal GDP targeting avoids having to determine a controversial estimate for potential output.&quot; </p>Mark A. Sadowski commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017d3f97beee970c2013-01-07T18:46:26Z2013-01-07T18:46:26ZMark A. Sadowskihttp://www.themoneyillusion.com/?p=18579 Former Fed Governor Frederic Mishkin joins the NGDP bandwagon By Scott Sumner "Evan Soltas sent me an important new...<p><a href="http://www.themoneyillusion.com/?p=18579" rel="nofollow">http://www.themoneyillusion.com/?p=18579</a></p>
<p>Former Fed Governor Frederic Mishkin joins the NGDP bandwagon<br />
By Scott Sumner</p>
<p>&quot;Evan Soltas sent me an important new WSJ piece by Frederic Mishkin and Michael Woodford:</p>
<p><a href="http://online.wsj.com/article/SB10001424127887324274404578211832381399400.html?mod=googlenews_wsj" rel="nofollow">http://online.wsj.com/article/SB10001424127887324274404578211832381399400.html?mod=googlenews_wsj</a><br />
<br />
&quot;The Fed also needs to clarify that the threshold of 2.5% for the inflation rate in no way suggests that it is weakening its commitment to its long-run inflation target of 2%. It would be dangerous to weaken this commitment, as it would lead to a permanent ratcheting up of inflationary expectations and inflation.<br />
<br />
Instead, the Fed’s new approach is a temporary policy to keep interest rates low for longer, to make up for the inadequate nominal GDP growth that has occurred since 2008. Once the nominal GDP growth shortfall has been eliminated, it will be appropriate to again conduct policy much as was done before the crisis. That means ensuring a long-run inflation rate of 2% in terms of the PCE (personal consumption expenditure) deflator, and an average unemployment rate that is consistent with price stability.<br />
<br />
It would have been better if the FOMC had explained its temporary policy by describing the size of the nominal growth shortfall that needed to be made up. A stated intention to “catch up” to a particular nominal GDP path would have clarified that how long interest rates will remain low will depend on economic outcomes, while emphasizing the central bank’s intention to return to a path consistent with its long-run inflation target.&quot;</p>Mark A. Sadowski commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017ee70c1e5d970d2013-01-07T18:44:22Z2013-01-07T18:44:22ZMark A. Sadowskihttp://www.aei-ideas.org/2013/01/the-most-dangerous-idea-about-the-fed-monetary-policy-doesnt-matter/? January 4, 2013 The most dangerous idea about the Fed: Monetary policy doesn’t matter By James Pethokoukis "But has...<p><a href="http://www.aei-ideas.org/2013/01/the-most-dangerous-idea-about-the-fed-monetary-policy-doesnt-matter/?" rel="nofollow">http://www.aei-ideas.org/2013/01/the-most-dangerous-idea-about-the-fed-monetary-policy-doesnt-matter/?</a></p>
<p>January 4, 2013</p>
<p>The most dangerous idea about the Fed: Monetary policy doesn’t matter<br />
By James Pethokoukis</p>
<p>&quot;But has opinion of Fed policy effectiveness now swung too far in the other direction, from omnipotent to impotent? Economists Christina Romer and David Romer think so. As they argue in a new paper, “The Most Dangerous Idea in Federal Reserve History: Monetary Policy Doesn’t Matter”:...&quot;</p>
<p><a href="http://www.aeaweb.org/aea/2013conference/program/retrieve.php?pdfid=466" rel="nofollow">http://www.aeaweb.org/aea/2013conference/program/retrieve.php?pdfid=466</a></p>
<p>&quot;...Romer and Romer pointedly criticize Fed Chairman Ben Bernanke and other Fed board members for their public views, mildly reminiscent of the 1930s Fed, that “monetary policy tools are not very effective and potentially costly.” As such, they are encouraged by the recent Fed move to target unemployment and indefinitely continue its bond buying strategy until that target is hit as long as inflation remains anchored. (Christina Romer has advocated the Fed switch to NGDP level targeting, so this is hardly surprising.) Romer and Romer:<br />
<br />
&quot;...But the hundred years of Federal Reserve history show that humility can also cause large harms. In the 1930s, excessive pessimism about the power of expansionary monetary policy and about its potential costs caused monetary policymakers to do little to combat the Great Depression or promote recovery. I … We have stressed that it is too soon to reach conclusions about recent developments. But, faced with persistent high unemployment and below-target inflation, beliefs that the benefits of expansion are small and the costs potentially large appear to have led monetary policymakers to eschew more aggressive expansionary policy in much of 2010 and 2011. In hind-sight, these beliefs may be judged too pessimistic...&quot;</p>
<p>The Romer and Romer paper is part of the annual meeting of the American Economic Association. The duo also write another excellent paper on monetary policy, “Friedman and Schwartz’s Monetary Explanation of the Great Depression: Old Challenges and New Evidence.” </p>
<p><a href="http://www.aeaweb.org/aea/2013conference/program/retrieve.php?pdfid=465" rel="nofollow">http://www.aeaweb.org/aea/2013conference/program/retrieve.php?pdfid=465</a></p>
<p>In it, Romer and Romer establish a link between monetary shocks and expectations of deflation in the central years of the downturn—1930 and 1931–by examining the business press of the era:<br />
<br />
&quot;We find evidence that these professional observers did indeed expect deflation in substantial part because of Federal Reserve behavior and monetary contraction. This suggests that monetary shocks in the Depression may have affected output and employment by raising real interest rates.&quot;</p>Mark A. Sadowski commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017c3568c1ff970b2013-01-07T18:33:47Z2013-01-07T18:33:47ZMark A. Sadowskihttp://online.wsj.com/article/SB10001424127887323706704578225770600742666.html January 6, 2013 Is the Fed Doing Enough—or Too Much—to Aid Recovery? By MICHAEL S. DERBY And KRISTINA PETERSON...<p><a href="http://online.wsj.com/article/SB10001424127887323706704578225770600742666.html" rel="nofollow">http://online.wsj.com/article/SB10001424127887323706704578225770600742666.html</a></p>
<p>January 6, 2013</p>
<p>Is the Fed Doing Enough—or Too Much—to Aid Recovery? <br />
By MICHAEL S. DERBY And KRISTINA PETERSON</p>
<p>&quot;... “Uncertainty over the Fed’s latest communications strategy figured as part of a broader debate at the economists’ gathering over whether the Fed is doing enough—or too much—to boost the economic recovery and over the potential risks of the Fed’s unusual and unprecedented policies. On the 100th anniversary of the central bank’s creation, economists remain divided over whether the Fed’s decisions to slash interest rates to nearly zero and buy trillions of dollars in bonds will fuel inflation or fall short of reigniting growth.”...&quot;</p>Mark A. Sadowski commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017ee70bf7b1970d2013-01-07T18:25:34Z2013-01-07T18:25:34ZMark A. Sadowskihttp://www.slate.com/blogs/moneybox/2013/01/07/romer_romer_on_monetary_policy_complacency.html January 7, 2013 Romer and Romer on Monetary Policy Complacency By Matthew Yglesias "Perhaps my favorite paper delivered at...<p><a href="http://www.slate.com/blogs/moneybox/2013/01/07/romer_romer_on_monetary_policy_complacency.html" rel="nofollow">http://www.slate.com/blogs/moneybox/2013/01/07/romer_romer_on_monetary_policy_complacency.html</a></p>
<p>January 7, 2013</p>
<p>Romer and Romer on Monetary Policy Complacency<br />
By Matthew Yglesias</p>
<p>&quot;Perhaps my favorite paper delivered at the American Economics Association meeting—in part because it had no math—was a historical essay from Christina Romer and David Romer on &quot;The Most Dangerous Idea in Federal Reserve History.&quot;<br />
<br />
<a href="http://www.aeaweb.org/aea/2013conference/program/retrieve.php?pdfid=466" rel="nofollow">http://www.aeaweb.org/aea/2013conference/program/retrieve.php?pdfid=466</a></p>
<p>The most dangerous idea, they say, is excessive pessimism about monetary policy. If you look back at the two key eras where we say monetary policy went awry—during the deflation of the 1930s and the inflation of the 1970s—the interesting thing that Romer and Romer find is that if you dig into the archives of the Federal Reserve minutes there weren&#39;t really &quot;mistakes&quot; as you might think of it. Policymakers in the &#39;30s knew there was a deflationary slump, and they knew it was bad, just as policymakers in the &#39;70s knew there was an inflationary spiral, and they knew it was bad. But in the &#39;30s, policymakers persuaded themselves that with interest rates already low there was nothing more they could do, while policymakers in the &#39;70s persuaded themselves that inflation represented a purely structural phenomenon that they couldn&#39;t cure. So you got a lot of talk about how other people need to step up.</p>
<p>The funny thing, they say, is that in both cases it turned out the problems could actually be solved quite quickly once you put someone in office who thought it was possible to solve them. The Volcker recession, in particular, though painful, was actually remarkably short and achieved its objective decisively. There&#39;s every reason to think you could have done the same thing in 1971 or 1978, and it probably would have been even quicker and less painful.</p>
<p>I would add to the Romer and Romer analysis a little international perspective from my reading of Hjalmar Schacht&#39;s memoir...&quot; </p>
<p><a href="http://www.slate.com/blogs/moneybox/2011/12/21/perverse_reputational_incentives_in_central_banking.html" rel="nofollow">http://www.slate.com/blogs/moneybox/2011/12/21/perverse_reputational_incentives_in_central_banking.html</a></p>Mark A. Sadowski commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017c3568a0ed970b2013-01-07T18:21:05Z2013-01-07T18:21:05ZMark A. Sadowskihttp://www.angrybearblog.com/2013/01/platinum-currency-whats-feds-end-game.html? January 6, 2013 Platinum Currency: What's The Fed's End Game? By Steve Roth "Steve Randy Waldman as usual gets...<p><a href="http://www.angrybearblog.com/2013/01/platinum-currency-whats-feds-end-game.html?" rel="nofollow">http://www.angrybearblog.com/2013/01/platinum-currency-whats-feds-end-game.html?</a></p>
<p>January 6, 2013</p>
<p>Platinum Currency: What&#39;s The Fed&#39;s End Game? <br />
By Steve Roth</p>
<p>&quot;Steve Randy Waldman as usual gets practical about Treasury issuing platinum coins. </p>
<p><a href="http://www.interfluidity.com/v2/3630.html#comment-28383" rel="nofollow">http://www.interfluidity.com/v2/3630.html#comment-28383</a></p>
<p>JKH in comments there does typically likewise.<br />
<br />
Suppose the Department of the Treasury says:<br />
<br />
“We have a statutory obligation to pay all amounts that have been authorized by Congress — both expenditure and debt obligations. Since the borrowing limit has been reached and Congress won’t let us sell bonds to make the payments they’ve authorized, we are now issuing physical currency, in the form of platinum coins, to meet those obligations. We are required to do this by statute.”<br />
<br />
Let’s say the coins are worth $1 million each.<br />
<br />
Treasury would have to issue about $100 billion in coins per month, which is about what it currently issues in bonds. The coins would be effectively the same as zero-interest, perpetual bonds.<br />
<br />
It doesn’t matter conceptually whether Treasury deposits that currency at their bank (the Fed) then pay bills normally using checks and wire transfers, or issues the coins to payees. Payees will deposit them at their banks, banks will deposit them in their accounts at the Fed, and the result is the same. The Fed has a bunch of platinum coins in its vault, and the government has met its obligations.<br />
<br />
Ditto if Treasury sells the coins to primary dealers/banks/sovereign-wealth funds:<br />
<br />
1. A transfer of Fed reserves/deposits from dealers/bankers to Treasury. Treasury has money to spend.<br />
<br />
2. Dealers/bankers deposit their coins at the Fed.<br />
<br />
3. The Fed issues reserves to dealers/bankers in return.<br />
<br />
But: Suppose the Fed starts feeling inflation looming. So it sells bonds and receives bank deposits (reserves) in return, to sop up excess money/reserves. This is called “sterilizing” the platinum money creation. (We’ll ignore for the moment the fact that the sold bonds may/will just get repoed in the private market in return for cash.)<br />
<br />
But the Fed’s only got about $3 trillion in bonds to sell. What happens when it runs out? Can it still control inflation?<br />
<br />
(At that point, monetary policy is effectively managed by congress’s taxing and spending decisions. Budget deficit = easing. Budget surplus = tightening. That is not a promising prospect.)<br />
<br />
The Fed could start selling its platinum coins, draining reserves/”money” out of the system. (Assuming those coins aren’t used for exchange, but are held in vaults just like other “reserves”/stores of value.)<br />
<br />
But why would dealers buy them?<br />
<br />
The answer seems to be negative interest on reserves (IOR). If the Fed charged .25% (or whatever) to hold banks’ money for them (negative quarter point of interest), banks/dealers/sovereign-wealth funds would have an incentive to trade those reserves for platinum coins (at 0% interest) to hold in their vaults.<br />
<br />
Would (negative) IOR be a sufficiently effective monetary instrument for the Fed to manage monetary policy? Other implications?&quot;</p>Mark A. Sadowski commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017c3568985e970b2013-01-07T18:18:06Z2013-01-07T18:18:06ZMark A. Sadowskihttp://macromarketmusings.blogspot.com/2013/01/michael-woodford-continues-to-do-gods.html January 7, 2013 Michael Woodford Continues to Do God's Work By David Beckworth "Michael Woodford continues to do God's...<p><a href="http://macromarketmusings.blogspot.com/2013/01/michael-woodford-continues-to-do-gods.html" rel="nofollow">http://macromarketmusings.blogspot.com/2013/01/michael-woodford-continues-to-do-gods.html</a></p>
<p>January 7, 2013</p>
<p>Michael Woodford Continues to Do God&#39;s Work<br />
By David Beckworth</p>
<p>&quot;Michael Woodford continues to do God&#39;s work on the pages of the Wall Street Journal </p>
<p><a href="http://online.wsj.com/article/SB10001424127887324274404578211832381399400.html" rel="nofollow">http://online.wsj.com/article/SB10001424127887324274404578211832381399400.html</a></p>
<p>and an in an interview with Bloomberg. </p>
<p><a href="http://www.bloomberg.com/news/2013-01-06/should-the-fed-change-its-target-interview-with-michael-woodford.html" rel="nofollow">http://www.bloomberg.com/news/2013-01-06/should-the-fed-change-its-target-interview-with-michael-woodford.html</a></p>
<p>In the former, he along with Frederick Mishkin, advance the case for nominal GDP (NGDP) level targeting by showing how the current innovations to Fed policy are effectively a step in that direction. They carefully point out these changes allow for catch up aggregate demand growth while still anchoring long-run inflation expectations, the very essence of a NGDP level target. Woodford further expounds on this idea in his Bloomberg interview. </p>
<p>This is an important point, because many see nominal GDP level targeting as giving license to the Fed to do excessive money creation. On the contrary, it provides a solid long-run nominal anchor while allowing inflation to move in response to supply shocks in the short-run. Here is how I described it earlier:...&quot;</p>
<p><a href="http://macromarketmusings.blogspot.com/2012/09/john-cochrane-michael-woodford-and.html" rel="nofollow">http://macromarketmusings.blogspot.com/2012/09/john-cochrane-michael-woodford-and.html</a></p>
<p>&quot;...And since it ignores supply shocks--e.g it would allow positive productivity shocks to result in lower inflation as long as NGDP growth was stable--NGDP level tartgeting tends to avoid swings in the stance of monetary policy that can be destabilizing. The future of monetary policy is NGDP level targeting.&quot;</p>im1dc commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017c35689579970b2013-01-07T18:17:14Z2013-01-07T18:17:14Zim1dcNot on topic re NSAID usage An important informational Editorial http://www.medpagetoday.com/Cardiology/Prevention/36723 "AHA Adds Its Weight to NSAID Risk Message" By...<p>Not on topic</p>
<p>re NSAID usage</p>
<p>An important informational Editorial</p>
<p><a href="http://www.medpagetoday.com/Cardiology/Prevention/36723" rel="nofollow">http://www.medpagetoday.com/Cardiology/Prevention/36723</a></p>
<p>&quot;AHA Adds Its Weight to NSAID Risk Message&quot;</p>
<p>By Chris Kaiser, Cardiology Editor, MedPage Today<br />
...January 06, 2013</p>
<p>&quot;The American Heart Association (AHA) has joined the newly formed Alliance for the Rational Use of NSAIDs, a public health coalition that aims to bring more awareness to the health risks associated with nonsteroidal anti-inflammatory drugs (NSAIDs).</p>
<p>About 98 million NSAID prescriptions were filled in 2012 and about 23 million people in the U.S. use over-the-counter NSAIDs on a daily basis. But these drugs are not benign; they can harm the kidneys, gastrointestinal tract, and cardiovascular system.</p>
<p>For example, patients with a first heart attack who took NSAIDs had a 41% increased risk of a second heart attack that persisted out to 5 years, compared with similar patients who did not take NSAIDs, according to study published in Circulation in September.</p>
<p>A network meta-analysis of randomized trials published in BMJ in 2011 found that all NSAIDs carried a cardiovascular risk, but some were less harmful than others. In particular, naproxen had the lowest risk for myocardial infarction, while rofecoxib (Vioxx) topped the list. Rofecoxib was taken off the market in 2004.</p>
<p>&quot;It&#39;s very important for the American Heart Association to have joined the Alliance for the Rational Use of NSAIDs since the individuals who are at risk are just the patients we care for,&quot; Elliott Antman, MD, associate dean for clinical translation research at Harvard Medical School and a spokesperson for the AHA, told MedPage Today.</p>
<p>In 2007, the AHA published an update for clinicians on the use of NSAIDs. The key message of the scientific statement was for clinicians to use an NSAID that is &quot;associated with the least risk -- from a cardiovascular perspective -- in the lowest dose that is needed to treat the patient&#39;s pain over the shortest period of time,&quot; Antman said.</p>
<p>The scientific statement noted that the evidence at that time indicated that selective COX-2 inhibitors (celecoxib [Celebrex], for example) have adverse cardiovascular effects that include increased risk for myocardial infarction, stroke, heart failure, and hypertension. The risk is greatest in those with a prior history of cardiovascular disease or in those already at high risk for heart disease.</p>
<p>&quot;Many patients don&#39;t realize there is the potential for adverse events associated with NSAIDs,&quot; Jennifer Wagner, LPN, ASN, executive director of the Western Pain Society, the founding member of the Alliance, told MedPage Today. &quot;In particular, people can get into trouble when they unknowingly combine NSAIDs, such as an over-the-counter flu medication, on top of a known NSAID.&quot;</p>
<p>The scrutiny given to prescription opioid pain medications over the last several years has meant that many pain patients have increased their use of NSAIDs, which is what drew Wagner&#39;s attention to the risks associated with NSAID use.</p>
<p>&quot;Given the number and statistics, it&#39;s a pretty significant health issue,&quot; said Wagner, director of clinical research at Pain Research of Oregon.</p>
<p>The ultimate mission of the Alliance is to maximize the benefits of NSAIDs while reducing the risks, but there are three actionable goals the Alliance is committed to, Wagner said:</p>
<p> *Bridging the gap between clinical guidelines and clinical practice</p>
<p> *Encouraging healthcare providers to have open and ongoing dialog about NSAIDs with their patients</p>
<p> *Informing patients that they can take charge of their own healthcare around this issue</p>
<p>Other organizations that belong to the Alliance include the American Academy of Nurse Practitioners, the American Academy of Physician Assistants, the National Kidney Foundation, the American Chronic Pain Association, and the American Association of Colleges of Pharmacy.&quot;</p>
<p>&quot;Chris Kaiser</p>
<p>Cardiology Editor</p>
<p>Chris has written and edited for medical publications for more than 15 years. As the news editor for a United Business Media journal, he was awarded Best News Section. He has a B.A. from La Salle University and an M.A. from Villanova University. Chris is based outside of Philadelphia and is also involved with the theater as a writer, director, and occasional actor.&quot;<br />
=================================================</p>
<p>jrossi would be the regular here to explain the topic.</p>Mark A. Sadowski commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017d3f97788c970c2013-01-07T18:13:48Z2013-01-07T18:13:48ZMark A. Sadowskihttp://www.bloomberg.com/news/2013-01-06/should-the-fed-change-its-target-interview-with-michael-woodford.html January 6, 2013 Should the Fed Change Its Target?: Interview with Michael Woodford By Mark Whitehouse "...Q: What was...<p><a href="http://www.bloomberg.com/news/2013-01-06/should-the-fed-change-its-target-interview-with-michael-woodford.html" rel="nofollow">http://www.bloomberg.com/news/2013-01-06/should-the-fed-change-its-target-interview-with-michael-woodford.html</a></p>
<p>January 6, 2013</p>
<p>Should the Fed Change Its Target?: Interview with Michael Woodford<br />
By Mark Whitehouse</p>
<p>&quot;...Q: What was the thought process that led you to support nominal GDP targeting?<br />
<br />
A: Actually, it&#39;s an approach I&#39;ve been advocating for at least a decade, though in my earlier writing about this I referred to a more technical variant of the proposal (what I called an &quot;output-gap-adjusted price-level target&quot;) rather than to nominal GDP targeting. The idea is to have a target criterion with two qualities: It must focus on the level of a nominal variable rather than its growth rate, and it should involve some combination of prices and economic activity. I settled on nominal GDP -- the dollar value of all the goods and services produced in the economy -- because it&#39;s a measure that a central banker can talk about and be understood by the general public, and it avoids contentious issues such as the correct definition in practice of the &quot;output gap.&quot;<br />
<br />
I see it more as a refinement than as a move away from inflation targeting. In practice, targeting only means having a definite goal for inflation in the medium to long run, not an exclusive emphasis on inflation in deciding the appropriate nearer-term path for the economy. It is emphasized in Ben Bernanke&#39;s writing about inflation targeting, and the Fed&#39;s official statement a year ago that announced its inflation target, that one should also take into account the projected path for real economic activity when making short-run policy decisions. I think the Fed should be more explicit about how exactly it expects to choose among possible short-run paths, lest the inflation target itself cease to be meaningful; and I think that a commitment to a nominal GDP target path -- one that is chosen so as to yield the desired inflation rate in the medium to long run, while also explaining how to balance the inflation outlook with the outlook for real GDP growth in the short run -- would be a good way to do that...&quot;</p>Mark A. Sadowski commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017c35686de2970b2013-01-07T18:01:44Z2013-01-07T18:01:44ZMark A. Sadowskihttp://www.economist.com/blogs/freeexchange/2013/01/business-cycles January 7, 2013 Running out of time By Ryan Avent "...That's a disturbing possibility. At the last Federal Reserve...<p><a href="http://www.economist.com/blogs/freeexchange/2013/01/business-cycles" rel="nofollow">http://www.economist.com/blogs/freeexchange/2013/01/business-cycles</a></p>
<p>January 7, 2013</p>
<p>Running out of time <br />
By Ryan Avent</p>
<p>&quot;...That&#39;s a disturbing possibility. At the last Federal Reserve meeting Chairman Ben Bernanke announced new thresholds that would be used as guidelines for deciding when to raise the Fed&#39;s benchmark interest rate. </p>
<p><a href="http://www.federalreserve.gov/newsevents/press/monetary/20121212a.htm" rel="nofollow">http://www.federalreserve.gov/newsevents/press/monetary/20121212a.htm</a></p>
<p>Based on these guidelines and the Fed&#39;s projections for labour market improvement, it reckons that rates may begin to go up around 2015—not, that is, until the economy is firmly within the window in which we would expect a new downturn. </p>
<p><a href="http://www.federalreserve.gov/monetarypolicy/files/fomcprojtabl20121212.pdf" rel="nofollow">http://www.federalreserve.gov/monetarypolicy/files/fomcprojtabl20121212.pdf</a></p>
<p>That&#39;s bad news. It suggests that the economy may be well on its way back toward recession at a time when the Fed&#39;s policy rate is at most a percentage point or two above zero. That, in turn, gives the Fed very little room to ease in response to economic weakness before running back into the constraints that have kept it, by its own admission, from addressing unemployment as aggressively as it would have had there been the opportunity to continue cutting rates.</p>
<p>Without an acceleration in the pace of growth, in other words, the American economy may remain stuck in this trap for more than one business cycle. That&#39;s rough news for workers. The Fed projects an unemployment rate between 6.0% and 6.6% in 2015, above the Fed&#39;s estimate of the economy&#39;s &quot;full-employment&quot; unemployment rate. At the pace of job growth in 2011 and 2012, the economy will only regain its pre-recession level of employment, of about 138m jobs, in March of 2015. A new recession may become a risk at a time when the economy has yet to work off the unemployment problem from the last downturn, and in a world in which the Fed is unwilling to respond as aggressively as the case demands because of its concerns regarding the risks of &quot;unconventional&quot; policy.</p>
<p>If that unpleasant outcome is to be avoided, the economy needs faster growth. Faster growth should bring back full employment sooner, reducing the risk that millions of the still-unemployed will drop out of the labour force forever, cutting America&#39;s growth potential. Just as important, an economy that&#39;s running hotter will generate upward pressure on interest rates sooner, giving the Fed more time to ease rates up in order to give itself a cushion to slash its policy rate into the next economic swoon...&quot;</p>Mark A. Sadowski commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017d3f975264970c2013-01-07T17:57:09Z2013-01-07T17:57:09ZMark A. Sadowskihttp://pragcap.com/explaining-the-silliness-of-the-debt-ceiling-and-platinum-coin-to-the-rest-of-the-world January 7, 2013 Explaining the Silliness of the Debt Ceiling and Platinum Coin to The Rest of the World…....<p><a href="http://pragcap.com/explaining-the-silliness-of-the-debt-ceiling-and-platinum-coin-to-the-rest-of-the-world" rel="nofollow">http://pragcap.com/explaining-the-silliness-of-the-debt-ceiling-and-platinum-coin-to-the-rest-of-the-world</a></p>
<p>January 7, 2013</p>
<p>Explaining the Silliness of the Debt Ceiling and Platinum Coin to The Rest of the World….<br />
By Cullen Roche</p>
<p>&quot;I did a couple of interviews for the BBC Sunday afternoon and evening explaining the current debate that’s raging over the debt ceiling. I’ll post the interviews when I have the links for them. But here’s the basic gist of where I stand on all of this. I think it’s all rather straight forward:<br />
■The debt ceiling is a silly rule that only exists in one democratic nation outside of the USA.<br />
■Why is it silly? It’s silly because Congress already debated and voted on the spending that results in the debt issuance.<br />
■If Congress wants to reduce spending they should revisit items through the standard legislative process as opposed to holding the US economy hostage once every few months and causing endless uncertainty for the rest of us.<br />
■The US government can always harness its banking system to procure funding for future spending (well, 99% of the time and in that 1% of the time when it can’t the Fed will buy the bonds on the primary market, but that’s a different matter and totally different from QE). The system is designed so the US government can always procure funds. Auctions, for instance, are literally designed not to fail. So the USA is not designed like Greece or Spain. The US government has an inflation constraint, not a solvency constraint. (See here for more).<br />
■Willingly defaulting on US debt by using the debt ceiling as a threat is pure madness. I can’t think of many things that would be more reckless than this.<br />
■The platinum trillion dollar coin, which was first discussed on the internet by MRist Carlos Mucha </p>
<p><a href="http://moslereconomics.com/2010/05/14/marshalls-latest/#comment-20736" rel="nofollow">http://moslereconomics.com/2010/05/14/marshalls-latest/#comment-20736</a></p>
<p>and then first disseminated by Ramanan, </p>
<p><a href="http://bilbo.economicoutlook.net/blog/?p=9956&cpage=1#comment-6592" rel="nofollow">http://bilbo.economicoutlook.net/blog/?p=9956&amp;cpage=1#comment-6592</a></p>
<p>(later by people like me) is a legal workaround the risk of defaulting in which the Treasurer can mint a trillion dollar coin, deposit it at the Fed and effectively allow the US government to cancel $1 trillion of existing debt. It’s the same as raising the debt ceiling $1T except it cancels outstanding debt as opposed to raising this silly self imposed constraint.<br />
■It’s not inflationary since it’s not $1T in new spending, but rather a cancelling of existing debt that the Fed has already taken out of the private sector to begin with.<br />
■It’s a silly idea. It’s an accounting gimmick. And I absolutely don’t think it should be used.<br />
■It’s sad that this is the current state of affairs in American politics. The fact that we’re fighting stupid ideas with stupider ideas would be funny if it wasn’t so sad.<br />
■BUT, if we have to choose between defaulting, which would be catastrophic </p>
<p><a href="http://monetaryrealism.com/why-hitting-debt-ceiling-is-totally-insane-and-why-platinum-coin-easing-is-reasonable/" rel="nofollow">http://monetaryrealism.com/why-hitting-debt-ceiling-is-totally-insane-and-why-platinum-coin-easing-is-reasonable/</a></p>
<p>and implementing a silly accounting trick then the decision is a no-brainer. It would be unpatriotic to default. Even more unpatriotic for leaders to allow default when they could mint the coin.<br />
■Hopefully there’s a rational way around all of this. The best suggestion I’ve heard is from Josh Barro at Bloomberg </p>
<p><a href="http://www.bloomberg.com/news/2013-01-03/why-we-must-go-off-the-platinum-coin-cliff.html" rel="nofollow">http://www.bloomberg.com/news/2013-01-03/why-we-must-go-off-the-platinum-coin-cliff.html</a></p>
<p>who says we should eliminate the debt ceiling in exchange for closing the coin loophole. Sounds fair enough to me.&quot;</p>Mark A. Sadowski commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017d3f974807970c2013-01-07T17:52:36Z2013-01-07T17:52:36ZMark A. Sadowskihttp://krugman.blogs.nytimes.com/2013/01/07/moral-obligation-coupons/ January 7, 2013 Moral Obligation Coupons By Paul Krugman "Don’t like the platinum coin option? Here’s a functionally equivalent...<p><a href="http://krugman.blogs.nytimes.com/2013/01/07/moral-obligation-coupons/" rel="nofollow">http://krugman.blogs.nytimes.com/2013/01/07/moral-obligation-coupons/</a></p>
<p>January 7, 2013</p>
<p>Moral Obligation Coupons<br />
By Paul Krugman</p>
<p>&quot;Don’t like the platinum coin option? Here’s a functionally equivalent alternative: have the Treasury sell pieces of paper labeled “moral obligation coupons”, which declare the intention of the government to redeem these coupons at face value in one year.</p>
<p>It should be clearly stated on the coupons that the government has no, repeat no, legal obligation to pay anything at all; you see, they’re not debt, and therefore don’t count against the debt limit. But that shouldn’t keep them from having substantial market value. Consider, for example, the fact that the government has no legal responsibility for guaranteeing the debt of Fannie and Freddie; nonetheless, it is widely believed that there is an implicit guarantee (because there is!), and this is very much reflected in the price of that debt.</p>
<p>So the government should have no trouble raising a lot of money by selling MOCs. It’s true that if they’re sold on the open market, they would probably sell at a substantial discount from face value, so this would in effect be high-interest-rate financing. But that’s better than either default or giving in to blackmail.</p>
<p>And maybe the coupons wouldn’t have to be sold on the open market; why not just have the Fed buy them? Bear in mind that the Fed doesn’t always buy safe assets; it’s buying a lot of mortgage-backed securities (from Fannie and Freddie; see above), and during the worst of the financial crisis it bought lots of commercial paper. So why not slightly speculative pieces of paper sold by the Treasury?</p>
<p>Again, while this may all seem kind of dodgy, it’s important to realize that unless the president does something like this he will be forced to do something illegal: namely, fail to spend money that, by act of Congress, he is legally obliged to spend. Fancy footwork is by far a better alternative; and if it enrages Mitch McConnell, well, that’s just an extra bonus.</p>
<p>Update: If there is a legal problem even with selling these coupons, there are still alternatives, such as paying suppliers with these coupons and then having the Fed buy them. The mechanics really don’t matter; as long as we’re in a liquidity trap, printing money, printing conventional debt securities, or printing funny money with no legal standing that nonetheless lets the government pay its bills are all equivalent.&quot;</p>Mark A. Sadowski commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017d3f974291970c2013-01-07T17:50:08Z2013-01-07T17:50:08ZMark A. Sadowskihttp://krugman.blogs.nytimes.com/2013/01/07/be-ready-to-mint-that-coin/ January 7, 2013 Be Ready To Mint That Coin By Paul Krugman "Should President Obama be willing to print...<p><a href="http://krugman.blogs.nytimes.com/2013/01/07/be-ready-to-mint-that-coin/" rel="nofollow">http://krugman.blogs.nytimes.com/2013/01/07/be-ready-to-mint-that-coin/</a></p>
<p>January 7, 2013</p>
<p>Be Ready To Mint That Coin<br />
By Paul Krugman</p>
<p>&quot;Should President Obama be willing to print a $1 trillion platinum coin if Republicans try to force America into default? Yes, absolutely. He will, after all, be faced with a choice between two alternatives: one that’s silly but benign, the other that’s equally silly but both vile and disastrous. The decision should be obvious.</p>
<p>For those new to this, here’s the story. First of all, we have the weird and destructive institution of the debt ceiling; this lets Congress approve tax and spending bills that imply a large budget deficit — tax and spending bills the president is legally required to implement — and then lets Congress refuse to grant the president authority to borrow, preventing him from carrying out his legal duties and provoking a possibly catastrophic default.</p>
<p>And Republicans are openly threatening to use that potential for catastrophe to blackmail the president into implementing policies they can’t pass through normal constitutional processes.</p>
<p>Enter the platinum coin. There’s a legal loophole allowing the Treasury to mint platinum coins in any denomination the secretary chooses. </p>
<p><a href="http://pragcap.com/lets-end-this-debt-ceiling-debate-with-a-1-oz-1t-coin" rel="nofollow">http://pragcap.com/lets-end-this-debt-ceiling-debate-with-a-1-oz-1t-coin</a></p>
<p>Yes, it was intended to allow commemorative collector’s items — but that’s not what the letter of the law says. And by minting a $1 trillion coin, then depositing it at the Fed, the Treasury could acquire enough cash to sidestep the debt ceiling — while doing no economic harm at all.</p>
<p>So why not?</p>
<p>It’s easy to make sententious remarks to the effect that we shouldn’t look for gimmicks, we should sit down like serious people and deal with our problems realistically. That may sound reasonable — if you’ve been living in a cave for the past four years.Given the realities of our political situation, and in particular the mixture of ruthlessness and craziness that now characterizes House Republicans, it’s just ridiculous — far more ridiculous than the notion of the coin.</p>
<p>So if the 14th amendment solution — simply declaring that the debt ceiling is unconstitutional — isn’t workable, go with the coin.</p>
<p>This still leaves the question of whose face goes on the coin — but that’s easy: John Boehner. Because without him and his colleagues, this wouldn’t be necessary.&quot;</p>anne commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017ee70b60b6970d2013-01-07T17:20:50Z2013-01-07T17:20:50Zannehttp://www.guardian.co.uk/commentisfree/2013/jan/07/john-brennan-dishonesty-cia-director-nomination January 7, 2013 John Brennan's extremism and dishonesty rewarded with CIA Director nomination Obama's top terrorism adviser goes from...<p><a href="http://www.guardian.co.uk/commentisfree/2013/jan/07/john-brennan-dishonesty-cia-director-nomination" rel="nofollow">http://www.guardian.co.uk/commentisfree/2013/jan/07/john-brennan-dishonesty-cia-director-nomination</a></p>
<p>January 7, 2013</p>
<p>John Brennan&#39;s extremism and dishonesty rewarded with CIA Director nomination<br />
Obama&#39;s top terrorism adviser goes from unconfirmable in 2008 to uncontroversial in 2013, reflecting the Obama legacy<br />
By Glenn Greenwald - Guardian</p>
<p>It is a perfect illustration of the Obama legacy that a person who was untouchable as CIA chief in 2008 because of his support for Bush&#39;s most radical policies is not only Obama&#39;s choice for the same position now, but will encounter very little resistance. Within this change one finds one of the most significant aspects of the Obama presidency: his conversion of what were once highly contentious right-wing policies into harmonious dogma of the DC bipartisan consensus. Then again, given how the CIA operates, one could fairly argue that Brennan&#39;s eagerness to deceive and his long record of supporting radical and unaccountable powers make him the perfect person to run that agency. It seems clear that this is Obama&#39;s calculus.</p>Steve commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017ee70ae1ce970d2013-01-07T16:38:03Z2013-01-07T16:38:03ZSteve"On Sunday the central bankers and regulators broadened the definition of liquid assets. For example, banks will be allowed to...<p>&quot;On Sunday the central bankers and regulators broadened the definition of liquid assets. For example, banks will be allowed to use securities backed by mortgages to meet a portion of the requirement.&quot;</p>
<p>Is this a joke?</p>im1dc commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017d3f9676ca970c2013-01-07T16:37:20Z2013-01-07T16:37:20Zim1dc"Enough." Does this mean you are going to start sourcing your criticisms of US foreign policy from respectable balanced sources...<p>&quot;Enough.&quot;</p>
<p>Does this mean you are going to start sourcing your criticisms of US foreign policy from respectable balanced sources instead of ceaseless repetition of the anti-American rhetoric of those you usually post?</p>im1dc commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017d3f966f87970c2013-01-07T16:34:36Z2013-01-07T16:34:36Zim1dcIf I'm lying prove it b/c you sayin' it means nothing.<p>If I&#39;m lying prove it b/c you sayin&#39; it means nothing.</p>im1dc commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017c35677e6f970b2013-01-07T16:33:24Z2013-01-07T16:33:24Zim1dcI was hoping people here would pickup on the Israel angle, the so-called Israel Lobby, which is quite real and...<p>I was hoping people here would pickup on the Israel angle, the so-called Israel Lobby, which is quite real and very effective as S. McConnell&#39;s and Cornyn&#39;s comments show all too clearly.</p>im1dc commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017d3f966779970c2013-01-07T16:31:35Z2013-01-07T16:31:35Zim1dcOh there you go again calling people 'monsters' when they disagree with you. Would your mother approve?<p>Oh there you go again calling people &#39;monsters&#39; when they disagree with you.</p>
<p>Would your mother approve?</p>im1dc commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017ee70ac7f5970d2013-01-07T16:27:40Z2013-01-07T16:27:40Zim1dcIt is an issue, but understanding of the issue is not evident in the post above. Hagel is from the...<p>It is an issue, but understanding of the issue is not evident in the post above. </p>
<p>Hagel is from the equally conservative State of Nebraska as Frank is from the liberal State of Mass. </p>
<p>IOW, Hagel was representing the views of his constituents for political reasons. Hagel has since apologized since he is no longer standing for elections in Nebraska.</p>
<p>Move on. </p>anne commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017d3f96599c970c2013-01-07T16:26:13Z2013-01-07T16:26:13ZanneCrazed lying and crazed intimidation as always. Enough of the crazed intimidation. Enough of this vile intimidation. Enough.<p>Crazed lying and crazed intimidation as always. Enough of the crazed intimidation. Enough of this vile intimidation. Enough.</p>anne commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017d3f96554f970c2013-01-07T16:24:31Z2013-01-07T16:24:31ZanneAnd Pakistan is happy to let us do it even if the anti-American Pakistani people don't like it. That tells...<p>And Pakistan is happy to let us do it even if the anti-American Pakistani people don&#39;t like it. That tells you something if you are listening.</p>
<p>[ Interesting, the ceaseless lying and ceaseless hatred of monsters. So we find monsters who have chosen to become definitive destroyers of other peoples and of the American Constitution as well. ]</p>im1dc commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017c35676436970b2013-01-07T16:22:42Z2013-01-07T16:22:42Zim1dcThe Drone program is indeed the chosen weapon to defeat al Qaeda and the Taliban in those areas that are...<p>The Drone program is indeed the chosen weapon to defeat al Qaeda and the Taliban in those areas that are inaccessible to US troops and in those countries with Armies that are unable, unwilling, or both to stop the Terrorists. </p>
<p>Of course, most of those nations secretly and silently welcome our efforts b/c those Terrorists have or will turn their weapons against their host country to overthrow them.</p>im1dc commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017c35675898970b2013-01-07T16:17:47Z2013-01-07T16:17:47Zim1dcAnd Pakistan is happy to let us do it even if the anti-American Pakistani people don't like it. That tells...<p>And Pakistan is happy to let us do it even if the anti-American Pakistani people don&#39;t like it. That tells you something if you are listening.</p>Fred C. Dobbs commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017c356756d3970b2013-01-07T16:17:05Z2013-01-07T16:17:05ZFred C. Dobbs(See Barney Frank on Chuck Hagel.) Barney Frank dials back opposition to Chuck Hagel nomination http://b.globe.com/WDuEKI via @BostonGlobe (For some...<p>(See Barney Frank on Chuck Hagel.)</p>
<p>Barney Frank dials back opposition <br />
to Chuck Hagel nomination <a href="http://b.globe.com/WDuEKI" rel="nofollow">http://b.globe.com/WDuEKI</a> via @BostonGlobe</p>
<p>(For some odd reason Barney *now* says<br />
Hagel is ok, but previously he was <br />
vehement in his opposition.)</p>
<p>Globe: Frank, a former Newton Democrat and the first openly gay member of Congress, put out this statement about Hagel’s potential nod before he left office last week:</p>
<p>“Then-Senator Hagel’s aggressively bigoted opposition to President Clinton’s naming the first openly gay Ambassador in US history was not, as [former] senator Hagel now claims, an aberration. He voted consistently against fairness for LGBT people and there does not seem to be any evidence prior to his effort to become secretary of defense of any apology or retraction of his attack on James Hormel. And to those of us who admire and respect Mr. Hormel, Senator Hagel’s description of him as aggressive can only mean that the senator strongly objected to Hormel’s reasoned, civil advocacy for LGBT people.”</p>
<p>The Jan. 2 statement from Frank concluded: “I cannot think of any other minority group in the US today where such a negative statement and action made in 1998 would not be an obstacle to a major presidential appointment.”</p>
<p>But the opposition from the left may now be dampening, which would be good news for Hagel’s chances. Amid lingering GOP opposition to his nomination, Hagel’s fortunes will depend heavily on Democrats in the Senate, who hold a majority in the chamber.</p>
<p>“With the attack coming out of the right, I hope he gets confirmed,” Frank said today.</p>im1dc commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017c35674e1d970b2013-01-07T16:13:35Z2013-01-07T16:13:35Zim1dcI have to ask, do any of your sources know that literally thousands of people have and continue to work...<p>I have to ask, do any of your sources know that literally thousands of people have and continue to work for the FedGovt in both the Bush years and the Obama years?</p>
<p>Which, of course, means that merely doing ones job in those two Administrations does not make them &#39;evil doers&#39; as implied by your sources.</p>
<p>It&#39;s Monday and you really need to learn to think outside of the box you are in, imo.</p>anne commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017c35674de0970b2013-01-07T16:13:28Z2013-01-07T16:13:28ZanneAmerica has been supporting destruction and killing by violent sectarian insurgents in Syria. Simple, but monsters who approve and admire...<p>America has been supporting destruction and killing by violent sectarian insurgents in Syria. Simple, but monsters who approve and admire American provoked violence applaud.</p>im1dc commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017ee70a9f79970d2013-01-07T16:11:01Z2013-01-07T16:11:01Zim1dcExtremist garbage post by Glenn, imo.<p>Extremist garbage post by Glenn, imo.</p>anne commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017c35674459970b2013-01-07T16:09:43Z2013-01-07T16:09:43Zannehttp://angryarab.blogspot.com/2013/01/the-barry-obama-doctrine.html January 6, 2013 The Barry Obama Doctrine "Since becoming commander in chief, Obama has signed off on approximately 300...<p><a href="http://angryarab.blogspot.com/2013/01/the-barry-obama-doctrine.html" rel="nofollow">http://angryarab.blogspot.com/2013/01/the-barry-obama-doctrine.html</a></p>
<p>January 6, 2013</p>
<p>The Barry Obama Doctrine</p>
<p>&quot;Since becoming commander in chief, Obama has signed off on approximately 300 drone strikes in Pakistan alone, more than six times the amount approved by President George W. Bush, according to the New America Foundation, a Washington think tank. It&#39;s estimated that roughly 2,500 people have died in drone strikes conducted by the Obama administration.&quot; *</p>
<p>* <a href="http://washingtonexaminer.com/after-new-attacks-obama-faces-questions-on-drones/article/2517518#.UOnZ63ez6Q4" rel="nofollow">http://washingtonexaminer.com/after-new-attacks-obama-faces-questions-on-drones/article/2517518#.UOnZ63ez6Q4</a></p>
<p>-- As&#39;ad AbuKhalil</p>im1dc commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017d3f962fc3970c2013-01-07T16:09:36Z2013-01-07T16:09:36Zim1dcOops, sorry for the double post. Website software issues.<p>Oops, sorry for the double post. Website software issues.</p>anne commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017d3f962eff970c2013-01-07T16:09:13Z2013-01-07T16:09:13Zannehttp://www.commondreams.org/headline/2013/01/06 January 6, 2013 Strikes Pound Pakistan in Obama's Ongoing Drone War At least 10 reported killed in latest casualties...<p><a href="http://www.commondreams.org/headline/2013/01/06" rel="nofollow">http://www.commondreams.org/headline/2013/01/06</a></p>
<p>January 6, 2013</p>
<p>Strikes Pound Pakistan in Obama&#39;s Ongoing Drone War<br />
At least 10 reported killed in latest casualties of clandestine war<br />
By Andrea Germanos</p>
<p>A series of drone attacks killed at least 10 people on Sunday in a continuation of the Obama administration&#39;s drone war on Pakistan.</p>
<p>A series of strikes in South Waziristan continue Obama&#39;s clandestine drone war on Pakistan. (Photo: White House/Pete Souza) Corporate media reports say the attack included missiles targeting three compounds that were hideouts that held militants or Taliban fighters in the South Waziristan region of Pakistan.</p>
<p>But exactly who has died, let alone why they were targeted, in this most recent attack is as yet unclear.</p>
<p>&quot;We are not sure who was killed on the ground, whether they were indeed militants as claimed by the intelligence sources,&quot; Al Jazeera&#39;s Kamal Hyder reports. &quot;Normally, there are civilian casualties as well, particularly when compounds and houses are hit.&quot;</p>
<p>The drone strikes have been furiously condemned in the country, and on Saturday thousands of Pakistanis protested over strikes on Thursday that killed Mullah Nazir, reportedly a top leader in the Pakistani Taliban.</p>
<p>Thursday&#39;s attacks also included a missile strike that appears to have targeted rescuers.</p>im1dc commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017c3567405e970b2013-01-07T16:08:13Z2013-01-07T16:08:13Zim1dcHuh? What is this clown talking about now? Did he fail to listen to Assad's speech to his people and...<p> Huh? What is this clown talking about now? Did he fail to listen to Assad&#39;s speech to his people and the world?</p>im1dc commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017ee70a9807970d2013-01-07T16:08:00Z2013-01-07T16:08:00Zim1dcHuh? What is this clown talking about now? Did he fail to listen to Assad's speech to his people and...<p>Huh? What is this clown talking about now? Did he fail to listen to Assad&#39;s speech to his people and the world?</p>anne commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017c35673da0970b2013-01-07T16:07:05Z2013-01-07T16:07:05Zannehttp://www.commondreams.org/headline/2013/01/07 January 7, 2013 Obama to Nominate John Brennan, 'Kill List' Architect, as New CIA Chief John Brennan's career spans...<p><a href="http://www.commondreams.org/headline/2013/01/07" rel="nofollow">http://www.commondreams.org/headline/2013/01/07</a></p>
<p>January 7, 2013</p>
<p>Obama to Nominate John Brennan, &#39;Kill List&#39; Architect, as New CIA Chief<br />
John Brennan&#39;s career spans from the dark days of Bush&#39;s torture program to Obama&#39;s secretive &#39;kill list&#39;</p>
<p>-- Jon Queally</p>im1dc commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017d3f9625fe970c2013-01-07T16:05:20Z2013-01-07T16:05:20Zim1dcProbably some professor of Business or Econ told Stacy, or Stacy read somewhere, that there is a FOMC meeting relationship...<p>Probably some professor of Business or Econ told Stacy, or Stacy read somewhere, that there is a FOMC meeting relationship that can be traded for gain. </p>
<p>To Stacy&#39;s credit he/she is wondering why that relationship is not what that professor or book said it was.</p>
<p>That, imo, is an example of the central conundrum of Economics, Business, Finance, and Market, i.e., people change behavior from time to time, even FOMC people, therefore it is hazardous to risk much betting on past behavior continuing on automatically. </p>
<p>Which btw is why bet on bonds, you take people out of the equation.</p>anne commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017c356734f9970b2013-01-07T16:03:25Z2013-01-07T16:03:25Zannehttp://www.guardian.co.uk/commentisfree/2013/jan/07/john-brennan-dishonesty-cia-director-nomination January 7, 2013 John Brennan's extremism and dishonesty rewarded with CIA Director nomination Obama's top terrorism adviser goes from...<p><a href="http://www.guardian.co.uk/commentisfree/2013/jan/07/john-brennan-dishonesty-cia-director-nomination" rel="nofollow">http://www.guardian.co.uk/commentisfree/2013/jan/07/john-brennan-dishonesty-cia-director-nomination</a></p>
<p>January 7, 2013</p>
<p>John Brennan&#39;s extremism and dishonesty rewarded with CIA Director nomination<br />
Obama&#39;s top terrorism adviser goes from unconfirmable in 2008 to uncontroversial in 2013, reflecting the Obama legacy<br />
By Glenn Greenwald - Guardian</p>
<p>Prior to President Obama&#39;s first inauguration in 2009, a controversy erupted over reports that he intended to appoint John Brennan as CIA director. That controversy, in which I participated, centered around the fact that Brennan, as a Bush-era CIA official, had expressly endorsed Bush&#39;s programs of torture (other than waterboarding) and rendition and also was a vocal advocate of immunizing lawbreaking telecoms for their role in the illegal Bush NSA eavesdropping program. As a result, Brennan withdrew his name from consideration, issuing a bitter letter blaming &quot;strong criticism in some quarters prompted by [his] previous service with the&quot; CIA.</p>
<p>This &quot;victory&quot; of forcing Brennan&#39;s withdrawal proved somewhat Pyrrhic, as Obama then appointed him as his top counter-terrorism adviser, where he exerted at least as much influence as he would have had as CIA Director, if not more. In that position, Brennan last year got caught outright lying when he claimed Obama&#39;s drone program caused no civilian deaths in Pakistan over the prior year....</p>im1dc commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017ee70a678b970d2013-01-07T15:47:37Z2013-01-07T15:47:37Zim1dcWhy are these picks considered controversial? Each is qualified, even highly qualified, for their individual jobs. What has the Republican...<p>Why are these picks considered controversial? Each is qualified, even highly qualified, for their individual jobs. </p>
<p>What has the Republican Party in D.C. today got against competency in government and why?</p>
<p><a href="http://abcnews.go.com/Politics/wireStory/obama-nominate-chuck-hagel-defense-secretary-18147879#.UOrrLHe1WBQ" rel="nofollow">http://abcnews.go.com/Politics/wireStory/obama-nominate-chuck-hagel-defense-secretary-18147879#.UOrrLHe1WBQ</a></p>
<p>&quot;Obama Taps Hagel for Pentagon, Brennan for CIA&quot;</p>
<p>Monday... January 7, 2013... 8:34 AM EST</p>
<p>By JULIE PACE AP White House Correspondent<br />
....WASHINGTON... January 7, 2013 (AP)</p>
<p>&quot;President Barack Obama on Monday will nominate Chuck Hagel as his next defense secretary and counterterrorism adviser John Brennan to lead the Central Intelligence Agency, two potentially controversial picks for his second-term national security team.</p>
<p>Hagel, even before being nominated, has faced tough criticism from congressional lawmakers who say the former GOP senator is anti-Israel and soft on Iran. And Brennan, a 25-year CIA veteran, withdrew from consideration for the spy agency&#39;s top job in 2008 amid questions about his connection to harsh interrogation techniques used during the George W. Bush administration.</p>
<p>The White House said Obama will announce both nominations Monday afternoon. Along with secretary of state nominee Sen. John Kerry, D-Mass., Hagel and Brennan would play key roles implementing and shaping Obama&#39;s national security priorities in a second term. All three men must be confirmed by the Senate...</p>
<p>...Sen. Mitch McConnell, the top Senate Republican, said Sunday... Any nominee must have &quot;a full understanding of our close relationship with our Israeli allies, the Iranian threat and the importance of having a robust military,&quot; McConnell said on ABC&#39;s &quot;This Week.&quot;</p>
<p>The second-ranking Senate Republican, John Cornyn of Texas, said in a statement that making Hagel defense secretary would be &quot;the worst possible message we could send to our friend Israel and the rest of our allies in the Middle East...&quot;<br />
=================================================</p>
<p>Since when did S. McConnell and S. Cornyn serve Israel&#39;s interests before the USA&#39;s? Their open disloyalty to America first is as close to treason without actually being treason as one can get imo. <br />
</p>anne commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017ee70a1236970d2013-01-07T15:09:55Z2013-01-07T15:09:55ZanneSo what are your thoughts on the latest FOMC minutes...? Did the Fed shot itself in the foot by confusing...<p>So what are your thoughts on the latest FOMC minutes...? Did the Fed shot itself in the foot by confusing the market?</p>
<p>[ Good grief, why not pay attention to the markets and notice the profound bull bond and stock markets we have been passing through? There may have been Federal Reserve policy confusion here and there, but not among investors. ]</p>anne commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017ee70a013d970d2013-01-07T15:01:41Z2013-01-07T15:01:41Zannehttp://angryarab.blogspot.com/2013/01/comments-on-syria.html January 6, 2013 Comments on Syria I have never seen more convergence of conventional (i.e. Western governments) (lack of)...<p><a href="http://angryarab.blogspot.com/2013/01/comments-on-syria.html" rel="nofollow">http://angryarab.blogspot.com/2013/01/comments-on-syria.html</a></p>
<p>January 6, 2013</p>
<p>Comments on Syria</p>
<p>I have never seen more convergence of conventional (i.e. Western governments) (lack of) wisdom as I have seen in the observations and comments on Syria here and on twitter and Facebook. Basically, writers and journalists in Western media (liberals and conservatives alike) echo the propagandists of House of Saud and House of Thani, * and vice versa. </p>
<p>* Ruling families of Saudi Arabia and Qatar</p>
<p>-- As&#39;ad AbuKhalil </p>EMichael commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017c35662b2a970b2013-01-07T13:55:08Z2013-01-07T13:55:08ZEMichaelBank of America has reached a settlement with Fannie Mae on residential mortgage loans sold by the bank and its...<p> Bank of America has reached a settlement with Fannie Mae on residential mortgage loans sold by the bank and its Countrywide unit to the agency ahead of the nation&#39;s 2008 financial crisis.</p>
<p>The settlement includes a $3.6 billion payment to Fannie Mae. Bank of America will also buy back some of the loans sold to Fannie Mae for $6.75 billion.</p>
<p><a href="http://www.huffingtonpost.com/huff-wires/20130107/us-bank-of-america-fannie-mae/?utm_hp_ref=business&ir=business" rel="nofollow">http://www.huffingtonpost.com/huff-wires/20130107/us-bank-of-america-fannie-mae/?utm_hp_ref=business&amp;ir=business</a></p>
<p>Wonder what these totals would be if the GSEs were not taking one for the team?</p>Stacy O'dell commented on 'Links for 01-07-2013'tag:typepad.com,2003:6a00d83451b33869e2017c356525ad970b2013-01-07T11:31:03Z2013-01-07T11:31:03ZStacy O'dellSo what are your thoughts on the latest FOMC minutes, Dr Thoma? Did the Fed shot itself in the foot...<p>So what are your thoughts on the latest FOMC minutes, Dr Thoma? Did the Fed shot itself in the foot by confusing the market?</p>